Research On Relationship Of Personal Income And Domestic Tourism Consumption

Now domestic tourism in our country has aroused much attention by the function of stimulating domestic demand, improving people's livelihood and increasing obtain employment. It can't be denied that the income is one of the important factors of domestic tourism consumption because the development of the economy can work on the nation income and the average income and in the end on the tourism consumption. So the relationship between the income and the tourism consumption has always been a focus in the study of the academia. If governments and businesses can hold the inherent relations of the income and the tourism consumption correctly, they can judge the tendency and the characteristics of the domestic tourism consumption and then take the pointed measures to arouse the people's travel initiative and ensure the sustainable development of domestic tourism, which can actually promote the healthy development of the domestic tourism market.From absolute income hypothesis to permanent income hypothesis to precautionary saving theory, the western consumption theories have now developed to a very mature stage, but domestic scholars only apply Keynesian's absolute income hypothesis to the research of tourism consumption, which still stays at the initial stage. Since the 1990s the uncertainties caused by economy reform strengthen the dwellers' preventive deposit motive and impact the relation between the income and the domestic tourism consumption, but the domestic scholars seldom take this factor into consideration when modeling. It is the truth that the income distribution gap in our country expands, but few of scholars are engaged in the research of relation between the income distribution and the domestic tourism consumption. In order to make up the theoretical inadequacy and the demonstration deficiency of tourism research, I want to introduce the western advanced research in the paper and reveal the mechanism of income and income distribution on the domestic tourism consumption through the establishment of economics models, which is valuable for tourism consumption theory.The paper elaborates the relation between personal income and domestic tourism consumption from three aspects. First, the paper studies the relation of the personal income and domestic tourism consumption on macro level. Given that the uncertainties caused by economy reform would strengthen the dwellers'preventive deposit motive and impact the relation between the income and the domestic tourism consumption, I add time varying parameters in Keynesian's absolute income model. The estimation by Kalman filtering method shows that long-run and time varying equilibrium relationship exists between personal income and domestic tourism consumption. The downward trend of marginal propensity to tourism consume of urban dweller shows that the economic system reforms mainly put some influence on urban dweller. This does not mean the rural dwellers aren't affected by uncertainties. The degree of uncertainty used to be very high in the countryside. With the development of reformation, farmer income channel tends diversity and rural areas have started to set up security system. The rural uncertainty of income and spending is weakening but the degree of it is deeper than urban dwellers. Then I carry on the empirical analysis byλhypothesis and find that the tourism consumption of rural residents shows stronger sensitivity on the current income than urban residents, which proves that the preventive deposit motive of rural residents caused by uncertainties and liquidity bind is stronger than urban residents. The conclusion means that improving the rural income can increase domestic tourism consumption more efficiently. By adding some time varying parameters in ELES model I find that as the income of urban and rural residents goes up, domestic consumption structure shows a reasonable trend.Second, the paper studies the tourism decision on micro level. Because travel is a time-consuming activity, I add leisure factor into my model to analyze that the tourism decision behavior under three conditions with time-bound and income-bound and then I make an empirical analysis by taking the case of Shanghai citizens. The results indicate that propensity to tourism consume of medium-income groups is the highest while the tourism consumptive behavior of low-income groups is restricted by income and the tourism consumptive behavior of high-income groups is restricted by time. Because the time which the urban dwellers can use for travel also expresses present in the aspect of holiday system, the article make up a VAR model to compare the contribution of personal income and holiday system on the domestic tourism consumption of urban citizens. The results suggest that the holiday system has no impact on the domestic tourism consumption of urban citizens while the the primary impetus of domestic tourism consumption is personal income and its own inertia.Third, the paper builds a theoretical model to analyze how the income distribution exerts an influence on tourism consumption. Because our country dweller acts with a myopia tourism behavior in the context economy transition, the paper build a "myopia" tourism consume model with a variation coefficient parameter and infer generalize an theoretical model about income distribution difference and the average propensity to domestic tourism consume based on mathematical deduction. By VAR model the paper finds that the internal income gap form negative effect toward the average propensity to domestic tourism consume. The internal income gap in urban habitants generates more than 40 percent of the variance of average propensity to domestic tourism consume with a strong restrict.At last, based on the substantial evidence and the analytic result, the article puts forward some suggestion that the government should taken measures to blunt preventive deposit motive, narrow the income gap, foster middle-income groups and institute a system of paid vacations for the sake of promoting the increase and sustainable development of the domestic tourism consumption.